The acceleration of digital transformation has changed the business world in multifarious ways. It has transformed how organizations run operations, develop products and render services. For instance, the explosion of Robotic Process Automation (RPA) and artificial intelligence (AI) in the business realm has triggered radical changes in employee roles. The pandemic became a predominant trigger for this change while also significantly influencing the evolution of employee expectations. It is widely perceived that as digitalization increasingly disrupts society, there is a brewing concern amongst employees about how it affects pain points such as jobs, wages, inequality, health, resource efficiency, and security. Setting organizational culture vibrant and futuristic is crucial to business success in this tech-ade and the next. CEO Insights recently interviewed Zubin Zack, Managing Director—South Asia, Middle East & Africa, O.C. Tanner, intending to bring our readers futuristic insights on the evolution of employee expectations and more. An alumnus of both Harvard and Wharton, Zubin possesses more than 25 years of experience in the industry, working with more than 8000 clients, including 1100 global companies. He is an expert in setting up successful teams in different parts of the world.
In conversation with Zubin Zack, Managing Director—South Asia, Middle East & Africa, O.C. Tanner
Could you shed light on the emerging trends in employee recognition?
One prominent trend we see in employee recognition is the increasing emphasis on measuring qualitative impact, while some continue to measure quantitative impact. A lot more organizations are now using subjective surveys and qualitative indicators, such as attrition rates and team engagement scores, to assess the effectiveness of their recognition programs.
The second trend is the increasing demand for technology-driven recognition solutions. Companies are turning to AI-powered tools and nudges to understand employee behaviors and recognition patterns. This analysis helps identify active recognition habits, unused recognition points, and the need for program optimization education. AI-driven nudges are vital in enhancing program engagement and efficiency, resulting in better employee engagement and utilization of recognition initiatives.
The third trend is around the growing demand for insights. Clients now expect comprehensive reports and dashboards to stay informed about global program performance. Companies using this program worldwide seek insights into various departments and teams, understanding what's working and what's not. They compare utilization rates with industry benchmarks and their own metrics. In essence, the trend is all about accessing valuable and actionable information for better decision-making.
The fourth trend centers around the increasing demand for expertise. Companies actively seek guidance on effectively appreciating, recognizing, and fostering a positive work environment. With a willingness to invest, they aim to uplift their employees and improve overall engagement. Organizations are actively seeking research, best practices, and insights from sources like the O.C. Tanner Institute to serve as benchmarks and referral materials for advancing their recognition initiatives.
The fifth emerging trend is around the rising popularity of symbols and swags to engage with diverse workforces. Specifically, it targets the gig economy, remote workers, and individuals who may not be based in traditional office settings, such as shop floor workers or pharmaceutical representatives. Using symbols and swag enables companies to connect with employees, promote their brand and purpose, and celebrate various accomplishments, milestones, and journeys.
Organisations with strong cultures are effectively attracting top talent, reducing turnover, and supporting employee growth through three key strategies
The final trend revolves around the increased redemption of vouchers, accompanied by a growing demand for curated offerings. Companies now seek more than just large catalogs; they want meaningful selections that provide employees with a sense of experience and appreciation. The focus is on curated catalogs offering diverse items, creating an award and reward experience rather than merely feeling like commodities from an ordinary e-commerce website.
These trends highlight the growing focus on personalized and technology-driven recognition initiatives to enhance employee engagement and create a positive workplace culture.
How do you perceive the accelerated evolution of digitization of recognition over the last few years? How are organizations with strong cultures attracting top talent, reducing employee turnover, and helping employees thrive?
The evolution of recognition programs has closely mirrored the growth of digitization in business functions. Initially, technology was employed to automate and streamline recognition processes. With digitization, access to information and analytics significantly increased, empowering large enterprises with valuable insights at their fingertips. This influx of data raised new questions that were previously unanswered, such as the status of recognition efforts. Analytics-driven approaches facilitated the development of education and communication strategies to enhance recognition effectiveness. Actionable insights enabled HR administrators and leaders to tailor interventions for better participation and higher redemptions, both at the team and individual levels. Overall, digitization's impact on recognition has been profound, enabling the program's progress by integrating AI, analytics, and targeted strategies.
Talking about the second part of the question - Organisations with strong cultures are effectively attracting top talent, reducing turnover, and supporting employee growth through three key strategies. Firstly, they define a clear Employee Value Proposition (EVP) and employer brand that resonates with their target employees, enabling them to nurture and retain a motivated workforce. Secondly, they prioritize hyper-personalization, understanding each employee's needs and preferences, leading to increased engagement and satisfaction. Lastly, these companies invest in their leaders and managers, ensuring they embody the organization's values and principles, setting an example for their teams and stakeholders. These approaches collectively foster a thriving work environment and contribute to the company's overall success.
Are there any changes in the recognition needs of employees on the same?
The fundamental principle of recognition remains unchanged, as employees still desire to feel important, appreciated, and valued. However, the specific recognition needs have evolved due to external factors such as competition and increased awareness through the internet. Employees now compare recognition programs and offerings from other companies, leading to changing expectations. These changes in needs are driven by the desire for unique rewards, symbols, or trophies, as well as the importance of having a supportive and effective manager. The shift in recognition needs is a response to the evolving landscape of what others are doing, pushing organizations to adapt and tailor their recognition strategies to meet these new expectations. Despite these changes, the core need for recognition remains constant.
Since its inception in 1927, how is O.C. Tanner maintaining its mark as a global leader in improving workplace culture and creating meaningful employee experiences so far?
Our ability to anticipate and stay ahead of emerging trends is a result of our substantial investment in research and data analysis. Through initiatives like the Global Culture report and interviews with thousands of employees, we gather valuable data to identify emerging trends in the market. This allows us to integrate research outcomes into our products and services, effectively meeting the evolving needs of our customers. Furthermore, we pride ourselves on being a company that walks the talk. Our strong commitment to reliability, integrity, and honesty has built credibility with our customers. By consistently delivering on our promises and being transparent in our interactions, we have garnered trust and loyalty from our clientele. These two key factors differentiate us and contribute to our success in meeting market demands effectively and earning customer satisfaction. Our proactive approach to data-driven insights and our unwavering commitment to integrity set us apart in the industry.
Going forward, what will be the role played by the latest technologies in creating workplace cultures, especially in recognizing and shaping top talent?
This technology's evolution goes beyond just a recognition program; it is transforming into a versatile platform capable of catering to a multitude of celebratory occasions and milestones. Clients already leverage this platform for various purposes, including team celebrations, onboarding achievements, and personal development milestones. We envision this technology evolving into a comprehensive platform accommodating numerous use cases as we move forward.
Measurement, ROI analysis, and continuous optimization are integral aspects of this evolving platform. We recognize the significance of education and insights, which extend beyond technology consulting, to ensure the success of these programs. The platform will serve as a hub for celebrations, incentive rollouts, and much more, catering to diverse needs and requirements.
Looking ahead, we anticipate a robust and dynamic future for this recognition platform, with its wide-ranging capabilities meeting the growing demands of clients and users in the years to come.